Breakeven no of users, page-6

I don't understand the immediate obsession with break even points - many successful companies have been operating for years even decades at losses as long as there is growth in the business.

Xero for example after all these years hit break even only just now. They could have easily hit break even in the first or second year of listing on a much lower number of users by cutting right down on staff, marketing costs etc. But with Saas businesses like these it is important to achieve a good acceleration and critical mass in growth first before taking the foot off the pedal somewhat on marketing and business dev. Amazon has never ever turned a profit - not that I am comparing the two but just saying it is not always all about breakeven points.

With 9sp the story is and has always been about global growth and validation by huge global channel partners. The test is how quickly and whether we hit that critical mass in user numbers which ultimately comments on how well the software works.

If and when we get close to any 'break even' point I'd much rather them invest further in growth through new product development, acquisitions, marketing etc. After all the relationships we have built with our channel partners are the most valuable assets we have at the moment so it is much better to look at offering them further solutions / products than keeping a few impatient investors happy.

Many of the small businesses I've done work with are profitable and cash flow +ve but at what level? A lemonade stand can break even or turn a profit. 9SP all about global growth and cultivating valuable relationships with some global Tier 1 clients. So let's focus on that and less on breakeven points at these early stages